Altogether 38 properties sold between October last year and March, for R7m on average, writes Simpiwe Piliso

The world's jet-setters have sent their agents to secure some of the best homes for the World Cup next month.

And some have even splashed out cash for sea-facing apartments and villas.

But a shortage of homes in Camps Bay, the tiny basin along the Atlantic coast, has sent prices through the roof.

The Institute of Estate Agents of South Africa's PropStats monitor this week indicated that 38 properties were sold in Camps Bay between October last year and March, at an average price of R7-million.

The suburb boasts more than 3500 households, ranging from apartments and luxury villas to beach-front cottages.

"It's (usually) rare to find property for sale in Camps Bay, due to its outstanding location, offering privacy and spectacular sea views," said Basil Moraitis, area manager for Pam Golding Properties Atlantic Seaboard.

According to Pam Golding, entry-level prices start at about R2.5-million for apartments and townhouses, about R5-million for older houses in need of renovation, and villas can fetch from R15-million to more than R30-million.

One house that has attracted international interest is a 1000m² four-bedroom home, which is on the market for R24.9-million.

Earlier this year, the Sunday Times reported that regardless of who wins the 2010 World Cup, there will be one victorious "side": South Africa homeowners who are renting to the world's richest soccer fans.

Estate agents said money was "no object" for their clients, with rentals ranging from R50000 a day to R4.2-million a month.

House values almost double

In just five years, homes in Nelspruit and surrounding towns in Mpumalanga have almost doubled in value because of increasing cross-border trade and traffic between South Africa and Mozambique.

The Maputo Development Corridor is creating positive spin-offs for the property market in Nelspruit, Komatipoort and Malelane.

The corridor runs through Gauteng and Mpumalanga, crosses the border at Komatipoort and heads to the deep-water port of Maputo in Mozambique.

In 2006 it was reported that a revamp of Maputo's harbour and the development of the corridor had stimulated the movement of about R2.8-billion in South African exports across the border each year.

Maputo's harbour attracts business from Mpumalanga because it is closer than Durban. The corridor is also an infrastructure link between South Africa, Swaziland and Mozambique - and has opened up a route connecting Walvis Bay, on the West Coast, with Maputo.

Nelspruit-based estate agent Gerhard van Niekerk said: "Since the upgrading of the road between Johannesburg and Maputo in 2000, and with increased international investment in Mozambique, traffic between South Africa and Mozambique has increased.

"This is coupled with a surge in the number of South Africans with specific expertise such as engineers, who are employed in Mozambique by both South African and international companies."

Homes in the three towns range in value from R500000 to R20-million, while monthly rentals vary from R3000 to R8000.

In Malelane, according to Van Niekerk, residents can sit on their verandas and watch herds of buffalo just metres away. The town is just 10km from the Kruger National Park.

Gautrain sparks office space rush

Gauteng businesses are scouting for business locations close to the Gautrain stations.

"With traffic congestion and access to key transport routes playing an increasing role in choice of business locations, the progress in construction of the Gautrain stations is viewed with considerable interest by those seeking either to relocate or lease business premises," said David Reid, manager of JHI Broker Services.

"Coupled with this, is the fact that as we are just beginning to see a recovery in the economy, the business sector remains focused on achieving optimum value for money."

Traffic congestion on the N1 is estimated to cost the economy more than R300-million a year, including production time lost while travelling, higher transport costs and above-average accident rates.

JHI Broker Services has received an increasing number of inquiries about Isando Business Park in Kempton Park, near the Gautrain's Rhodesfield Station.

"Negotiations are under way to secure direct access to Isando Business Park from Rhodesfield Station," said Reid.

He added that employees living in Midrand and working in Isando Business Park would have a 20-minute train trip, compared to about an hour-long journey by road.

According to the Gautrain website, the N1 carries some of the highest traffic volumes in South Africa, with more than 157000 vehicles a day.

JHI sales broker Lee Greyvenstein said the office park was comparable, if not better, than sought-after office parks in Bedfordview, Bruma, Parktown and Rosebank in Johannesburg and Brooklyn in Pretoria. Yet the rent is about a third of these venues.

Tenants already in the office park include One Time Airlines, and several freight, courier and distribution companies.

The R26-billion Gautrain, which is scheduled for completion in April next year, will use 125 buses to ferry commuters to and from stations.

Splashing out cash on houses

A number of wealthy South African buyers are paying cash for their homes, but whether this trend is sustainable remains to be seen.

"The ongoing difficulty in acquiring mortgage finance has not helped matters in the property market, and remains the single most influential factor in keeping the property market from recovering fully from its downturn," said Laurie Wener, managing director for Pam Golding Properties Western Cape metro region.

"(But) we simply cannot expect the market to be sustained by predominantly cash buyers, as it has been in recent months," she added.

Wener pointed out that between December last year and February this year, about 70% of all their sales in the Western Cape metro region had been cash.

Last month, a home in Bishopscourt was sold for R14-million, while two properties in Clifton fetched R12.6-million and R30.2-million.

"The buyers were all local," said Wener.

Another South African splashed out R8.9-million for a four-bedroom cottage on a 750m² stand in Kommetjie.

SA prices top Economist index

South African house prices have risen by a cumulative 418% over the past 12 years (1997-2009) outperforming Australia, the UK and Spain, according to the Economist's Global House Price Index.

The index shows that South Africa "far outstrips" any of the other 20 housing markets that it tracks.

The next best performers were Australia, the UK and Spain with growth of 181%, 175% and 167%, respectively.

The worst-performing housing market was Japan, with an actual negative growth of 36%.

"For those who have managed their financial affairs well, it's apparent that property remains an excellent investment," said Gerhard Kotzé, chief executive of ERA South Africa property group.

"More importantly, The Economist reports that South Africa is one of only a few countries in the world that has house prices back at their peak levels of 2008," Kotzé added.

Executives eye game farms

Gauteng executives, many of whom already own sprawling suburban estates and beach-front properties, are now eyeing private game farms.

And even foreign buyers are scouting for the rural properties.

"There is no other country in the world that offers a wildlife and game farming experience like South Africa," said Wayne Rubidge, manager of Pam Golding Wildlife Properties.

Pam Golding's portfolio of game farms includes properties ranging from 1000ha to 50000ha, and priced between R3-million and R350-million.

One game farm on the market, for R43-million, is a 10000ha property in Bo Karoo near Colesberg, which comes complete with sought-after Cape buffalos, rhinoceroses, a manor house, a renovated game lodge with six bedrooms, a chalet with three double-bedrooms, a guest cottage, staff quarters and various outbuildings.

Last month, a Danish businessman snapped up a semi-developed 3300ha game farm for a bargain R10.5-million.

"The large number of game farms on the market is testament to the challenges that the industry, like many others, is experiencing," said Rubidge.

"Buyers are increasingly looking for value and well-priced properties."

Over the past three months, Pam Golding has received inquiries for game farms north of Addo National Park around Somerset East and Jansenville in the Eastern Cape, Graaff-Reinet in the Karoo, as well as the Kalahari and the grassveld region of the Southern Free State.

Game farms in the Eastern Cape vary in price from R2000/ha to R10000/ha.

Owning a piece of royal history

A Black entrepreneur who wanted her own bed-and-breakfast has bought a Dutch-style guesthouse that once hosted Queen Elizabeth on her royal tour of South Africa in 1947.

Nontlupheko Nyawula, who "immediately fell in love" with the Victoria Manor guesthouse in Queenstown in the Eastern Cape, when she visited it four years ago, approached the Eastern Cape Development Corporation for assistance.

The former nurse soon acquired the R2.4-million to buy the property, which is now a four-star establishment with annual turnover of R20-million.

Nyawula has plans to extend the guesthouse by adding 15 rooms, a swimming pool, sauna and gym.